Air Canada outlined the key points of its new strategy at its investor day today. International expansion will be a priority, with the airline shifting capacity to international routes versus domestic routes, where growth is more subdued. Management is targeting continued cost reductions by replacing its Boeing 767 aircraft with 787s, which provide a 31% unit cost advantage over the 767s; the 767 aircrafts will be shifted to its Rouge discount airline, where they are expected to reduce Rouge’s unit costs by 30%. The company also noted that expanding the number of regional airlines it deals with, together with its new capacity sharing agreement with regional airline Chorus Aviation should save it $550 million over the next six years. Air Canada shares have rallied more than 30% over the past four weeks as sentiment regarding the airline’s performance and financial health has improved.